The cloud is a common image for the internet. Which is free and flexible over the IT landscape. But what is actually behind the cloud? What influence and control the cloud system? Using the example of a cloud ERP we want to take a look behind the scenes. It turns out to be something more than infrastructure and software.
Infrastructure as a basis(Cloud ERP)
If you decide to use a cloud service, you do not have to worry about anything related to IT infrastructure. Specialized providers will outsource and perform the required task by maintaining systems with high efficiency and professionalism. They form the backbone of Internet-based services. The demands placed on such data centers are very high. Regular certification audits to ensure that the quality is maintained at all times. Strict security policies administer all types of credit risks, access protection, cyber-threat threats, in case of fire, flood, earthquake, etc.
The list is impressively long. Shows all the risks that a company face in the On-premise operations of an ERP. This is especially true when it comes to a business-critical system such as ERP. If you want to play it safe, you can count on a cloud based ERP solution. Where the professionals work around the clock with certainty to ensure safe operation.
Software as a service
In a cloud ERP, installation of the software including the database occurs in a data center. ERP providers and infrastructure providers communicate about storage requirements, computing power, and service levels. The software provider thus becomes the customer of the infrastructure provider. The software provider will select a data center that guarantees the highest quality & standard. Already here, the service concept of the cloud ERP provider comes to fruition. Data management, system performance, etc are the most favorable services from the customer’s point of view.
software provider usually wants to have their corporate data hosted domestically. Thus ERP providers will only use data centers providers within their country. The service concept also plays a central role in the scope of services. As well as the provision of the software (public cloud or private cloud), in the planning and implementation of updates, etc.
By the way, we’re talking about “real” cloud solutions that require no utilities or virtual clients to operate. Only simple web access via a browser guarantees that an ERP can be quickly, easily accessed without any extra costs/licenses. Traditional ERP implementation cost is much higher than the subscription rate of cloud ERP.
Not all cloud services offer extra services. Web-based ERP systems form an exception. It requires careful analysis and documentation of actual and target processes, an introductory concept, data migration, individual adjustments, user training, and support, etc to provide better services.
Thus an ERP project in the cloud goes correctly over the stage.
In addition to infrastructure and software, the people behind the cloud are the third factor that plays a key role in choosing the right cloud based ERP.
Cloud is not the same cloud
As a customer of an ERP, the world behind the cloud cannot matter to you in principle. It is important for you that you receive the services you need in the right quality and in the defined scope. But if you look closer, you realize that the cloud is not the same cloud. The differences are sometimes subtle, but on the whole, they can significantly affect the benefits to your business. Thus, it is worthwhile to take a closer look at every cloud offer (and the provider).
Potential risks of cloud ERP systems
It is considered that the enterprise management cloud systems are not reliable enough in terms of information security. 30% of entrepreneurs fear to transfer ERP to a virtual environment due to possible data leaks and the loss of information that is strategically important to business (tax and financial reports, for example).